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DALSA Receives Contracts to Develop Custom CCD Image Sensor Chips

Posted 2/28/2006

Waterloo, Ontario, February 28, 2006 - DALSA Corporation (TSX:DSA), an international high performance semiconductor and electronics company, announced today that it has received two contracts totaling $2.3 million from customers in the professional imaging and life sciences end markets.

The first contract is for the development and delivery of a new high performance image sensor chip for use in professional imaging. The contract consists of both the development and follow-on production of the image sensor and has the potential for subsequent follow-on orders. The development is expected to be completed over the next nine months. The second contract is for the development of a unique image sensor chip used in life sciences imaging. The contract, which has the potential for follow-on production orders, is expected to be completed over the next 16 months. This is the third custom contract of its kind in the past seven months that DALSA has received from customers in the life sciences imaging end market.

"These two contracts demonstrate DALSA's strong market and technology position in the vibrant high performance digital imaging market space," commented Savvas Chamberlain, CEO of DALSA Corporation. "Our ability to combine leading edge image sensor design and fabrication, electronic camera design, and follow-on production capabilities into a custom-tailored solution opens up vast opportunities to deepen our relationships with existing customers and win new business in high growth global markets."

About DALSA Corporation
DALSA is an international high performance semiconductor and electronics company that designs, develops, manufactures, and markets digital imaging products and solutions, in addition to providing semiconductor products and services. DALSA's core competencies are in specialized integrated circuit and electronics technology, software, and highly engineered semiconductor wafer processing. Products and services include image sensor components; electronic digital cameras; vision processors; image processing software; and semiconductor wafer foundry services for use in MEMS, high-voltage semiconductors, image sensors and mixed-signal CMOS chips. DALSA is listed on the Toronto Stock Exchange under the symbol "DSA". The Company has its corporate offices in Waterloo, ON and approximately 1000 employees world-wide.

This press release contains forward looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in DALSA's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. DALSA has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.